Fair value measurement

Fair value accounting continues to be a topic of significant interest and debate. With unprecedented market events, turmoil in the credit markets, and a downturn in the global economy in recent years, discussion of fair value has intensified. This discussion made clear the need for consistent fair value measurements in a global market. To that end, the fair value guidance is a principles-based global framework that, with few exceptions, impacts all fair value measurements in a reporting entity’s financial statements.

Webcast

Energy & mining

Watch a replay of our recorded webcast in which we discuss valuation and impairment trends in the energy sector, including key assumptions, inputs and other considerations used by many energy companies in assessing long-lived assets for impairment.

At the 2013 AICPA National Conference on Banks and Savings Institutions, regulators and standard setters shared views on top-of-mind issues for financial institutions.

Dataline

12/10/13 | Assurance services

Derivative pricing practices have evolved in recent years to reflect the funding benefit of collateral when that collateral can be rehypothecated. In fact, some collateralized derivatives may now need to be valued based on discounting at the Overnight Indexed Swap (“OIS”) rate.

In our view, the time has come for the valuation profession to explore creating a robust professional infrastructure for those that perform valuations.

Accounting guides

8/23/13 | Assurance services

This PwC guide helps reporting entities meet the challenges of applying the key accounting and reporting standards under both U.S. GAAP and IFRS related to fair value measurements, ASC 820, and IFRS 13.

Dataline

7/25/13 | Assurance services

On May 29, 2013, the AICPA's Financial Reporting Executive Committee issued the AICPA Accounting and Valuation Guide, Valuation of Privately-Held-Company Equity Securities Issued as Compensation (the Guide), which replaces the 2004 edition of the practice aid on this topic. The Guide (also known as the Cheap Stock Guide) provides nonauthoritative valuation guidance and illustrations for preparers, auditors, and valuation specialists related to the issuance of privately-held company equity securities for compensation. This Dataline provides a high level overview of the Guide.

Dataline

12/7/12 | Assurance services

Classification and measurement is an important part of the FASB and IASB’s joint project on financial instruments. This Dataline provides a summary of the boards' decisions that is based on the project summaries posted on their websites, our observations of their meetings, and our understanding of their intent.

Dataline

12/3/12 | Assurance services

This year end, entities continue to face many complex financial reporting issues such as providing new fair value disclosures, accounting for debt modifications, and evaluating revenue recognition guidance. Economic challenges around the world continue to have broad financial reporting implications. While not an all-inclusive list, this Dataline is intended to serve as a timely reminder of leading practices and lessons learned on key issues that companies should consider as they navigate the year-end financial reporting process.

Dataline

10/18/12 | Assurance services

The 2012 AICPA National Conference on Banks and Savings Institutions was held September 10 through 12, 2012 in Washington, DC. Representatives from the banking regulators, SEC, and standard setters presented at the Conference along with auditors, users, preparers, and industry experts. Presenters expressed views on a wide range of important accounting, auditing, and financial reporting topics. This Dataline provides highlights of topics discussed at the Conference.

M&A snapshot

9/26/11 | Assurance services

In a business combination, buyers are required to record the acquired assets and assumed liabilities of a business at their fair values. Fair value reflects the price that market participants would receive to sell an asset or pay to transfer a liability. Assets and liabilities may be used differently by different market participants, resulting in variations in values. Therefore, a market participant's view is an important aspect of the valuation process as a buyer cannot look only to its own intended use of an asset or its ability to transfer a liability at a certain price. This publication provides insight on the identification of market participants, as well as how entities can develop market participant assumptions.